- [dataset] UNCTAD, 2023. Investment Policy Hub - International Investment Agreements Navigator. https://investmentpolicy.unctad.org [dataset] UNCTAD, 2020. Investment Dispute Settlement Navigator: full data release as of 31/07/2020. https://investmentpolicy.unctad.org/publications/1242/investment-dispute-settlement-navigatorfull -isds-data-release-as-of-31-07-2020-in-excel-formatUNCTAD, 2014. Investor State Dispute Settlement: A sequel, UNCTAD Series on Issues in International Investment Agreements II. New York, Geneva.
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- Abbas, S.M.A., Belhocine, N., El-Ganainy, A., Horton, M., 2011. Historical patterns and dynamics of public debt—evidence from a new database. IMF Economic Review 59, 717–742.
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Allee, T., Peinhardt, C., 2011. Contingent credibility: The impact of investment treaty violations on foreign direct investment. International Organization 65, 401–432.
- Bae, K.-H., Yun, Y.S., Bailey, W., 2006. Determinants of Bond Holdings by Foreign Investors. In: Bank for International Settlements (Eds.), Asian Bond Markets: Issues and Prospects 30, 102–128.
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- Banga, R., 2003. Impact of government policies and investment agreements on FDI Inflows. Indian Council for Research on International Economic Relations Working Paper 116, 1–43.
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Bengoa, M., Sanchez-Robles, B., Shachmurove, Y., 2020. Do trade and investment agreements promote foreign direct investment within Latin America? Evidence from a structural gravity model. Mathematics 8, 1–32.
Berger, A., Busse, M., Nunnenkamp, P., Roy, M., 2013. Do trade and investment agreements lead to more FDI? Accounting for key provisions inside the black box. International Economics and Economic Policy 10, 247–275.
Bhagwat, V., Brogaard, J., Julio, B., 2021. A BIT goes a long way: Bilateral investment treaties and cross-border mergers. Journal of Financial Economics 140, 514–538.
Bremus, F., Kliatskova, T., 2020. Legal harmonization, institutional quality, and countries’ external positions: A sectoral analysis. Journal of International Money and Finance 107, 102217.
Busse, M., Königer, J., Nunnenkamp, P., 2010. FDI promotion through bilateral investment treaties: More than a bit? Review of World Economics 146, 147–177.
- CEPII GeoDist Dataset, Head et al. (2010). Common language dummy (+) This dummy indicates if a common language is spoken by at least 9% of the population in the home and the host country.
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- CEPII GeoDist Dataset, Mayer and Zignago (2011). Colonial relationship dummy (+) This dummy indicates whether the home and the host country have been in a colonial relationship.
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- CEPII GeoDist Dataset, Mayer and Zignago (2011). Contiguity dummy (+) This dummy variable indicates whether the home and the host country share a common border.
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- CEPII GeoDist Dataset, Mélitz and Toubal (2014). RTA dummy (+) This dummy variable is 1 if the home and the host county are engaged in a regional trade agreement (Customs Union, Free Trade Agreement, Partial Mario Larch’s Regional Trade Agreements Database from Egger and Larch 50 Scope Agreement, Economic Integration Agreement.
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Chinn, M.D., Ito, H., 2006. What matters for financial development? Capital controls, institutions, and interactions. Journal of Development Economics 81, 163–192.
- Common colonizer dummy (+) This dummy indicates whether the home and the host country had a common colonizer after 1945.
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- Correa, R., Lee, K.H., Sapriza, H., Suarez, G.A., 2014. Sovereign credit risk, banks’ government support, and bank stock returns around the world. Journal of Money, Credit and Banking 46, 93– 121.
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Dahlquist, M., Pinkowitz, L., Stulz, R.M., Williamson, R., 2003. Corporate governance and the home bias. Journal of Financial and Quantitative Analysis 38, 87–110.
- Datastream, own calculations Sovereign debt to GDP (+) General government debt to GDP. Historical Public Debt Database - October 2020, Abbas et al. (2011) S&P ratings (+) Country ratings are based on S&P’s foreign currency ratings. Following Correa et al. (2014), we convert the ratings to a numerical scale from 0 to 21. A value of 21 represents the highest rating of AAA. The numeric ratings are adjusted for positive or negative outlook. We use yearly averages of the numeric ratings.
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Daude, C., Fratzscher, M., 2008. The pecking order of cross-border investment. Journal of International Economics 74, 94–119.
Dixon, J., Haslam, P.A., 2016. Does the quality of investment protection affect FDI flows to developing countries? Evidence from Latin America. The World Economy 39, 1080–1108.
Djankov, S., McLiesh, C., Shleifer, A., 2007. Private credit in 129 countries. Journal of Financial Economics 84, 299–329. 27 Egger, P., Larch, M., 2008. Interdependent preferential trade agreement memberships: An empirical analysis. Journal of International Economics 76, 384–399.
Egger, P., Merlo, V., 2007. The impact of bilateral investment treaties on FDI dynamics. The World Economy 30, 1536–1549.
Egger, P., Pfaffermayr, M., 2004. The impact of bilateral investment treaties on foreign direct investment. Journal of Comparative Economics 32, 788–804.
Fotak, V., Lee, H.K., Megginson, W., 2019. A BIT of investor protection: How Bilateral Investment Treaties impact the terms of syndicated loans. Journal of Banking and Finance 102, 138–155.
Frenkel, M., Walter, B., 2019. Do bilateral investment treaties attract foreign direct investment? The role of international dispute settlement provisions. The World Economy 42, 1316–1342.
Fu, T., Leng, J., Lin, M.-T., Goodell, J.W. 2022. External investor protection and internal corporate governance: Substitutes or complements for motivating foreign portfolio investment? Journal of International Financial Markets, Institutions & Money 81, 101686.
- Gallagher, K.P., Birch, M.B.L., 2006. Do investment agreements attract investment ? Evidence from Latin America. The Journal of World Investment & Trade 7, 961–974.
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- Giofré, M., 2013. Investor protection rights and foreign investment. Journal of Comparative Economics 41, 506–526.
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- Giofré, M., 2014. Domestic investor protection and foreign portfolio investment. Journal of Banking and Finance 46, 355–371.
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- Haftel, Y.Z., 2010. Ratification counts: US investment treaties and FDI flows into developing countries. Review of International Political Economy 17, 348–377.
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- Hallward-Driemeier, M., 2003. Do Bilateral Investment Treaties Attract FDI? Only a Bit... and they Could Bite. World Bank Policy Research Working Paper 3121.
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Head, K., Mayer, T., Ries, J., 2010. The erosion of colonial trade linkages after independence. Journal of International Economics 81, 1–14.
Hinz, L., 2023. International investment agreements and sovereign debt: an empirical analysis. Capital Markets Law Journal 18, 365–390.
- ICSID Arbitral Tribunal, Case No ARB/07/5, 4 August 2011.
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- ICSID, 1998. Preliminary Decision: Jurisdiction of the Arbitral Tribunal ICSIC Case No. ARB/97/6 Lanco International Inc. v. The Argentie Republic. ICSID Arbitral Tribunal, Case No. ARB/97/6, 8 December 1998.
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- ICSID, 2000. Gruslin v. Malaysia (II) - Award. ICSID Arbitral Tribunal, Case No ARB/99/3, 27 November 2000.
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- ICSID, 2014. Alemanni and others v The Argentine Republic - Decision on Jurisdiction and Admissibility. ICSID Arbitral Tribunal, Case No ARB/07/8, 17 November 2014. 28 ICSID, 2011. Abaclat and thers v The Argentine Republic - Decision on Jurisdiction and Admissibility.
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- ICSID, 2015a. Alemanni and others v The Argentine Republic - Order of the Tribunal Discontinuing the Proceeding. ICSID Arbitral Tribunal, Case No ARB/07/8, 14 December 2015.
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- ICSID, 2015b. Ambiente Ufficio v The Argentine Republic - Order of Discontinuance of the Proceeding. ICSID Arbitral Tribunal, Case No ARB/08/9, 28 May 2015.
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- ICSID, 2015c. Poštová Banka and Istrokapital v. The Hellenic Republic - Award (9 April 2015). ICSID Arbitral Tribunal, Case No ARB/13/8, 9 April 2015.
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- ICSID, 2016. Abaclat and others v The Argentine Republic - Consent Award under ICSID Arbitration Rule 43(2). ICSID Arbitral Tribunal, Case No ARB/07/5, 29 December 2016.
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- Jensen, N., 2008. Political risk, democratic institutions, and foreign direct investment. Journal of Politics 70, 1040–1052.
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- Kaufmann, D., Kraay, A., Mastruzzi, M., 2010. The Worldwide Governance Indicators Methodology and Analytical Issues. Policy Research Working Paper 5430.
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- Kerner, A., 2009. Why should I believe you? the costs and consequences of bilateral investment treaties. International Studies Quarterly 53, 73–102.
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Kho, B.C., Stulz, R.M., Warnock, F.E., 2009. Financial globalization, governance, and the evolution of the home bias. Journal of Accounting Research 47, 597–635.
- Kim, S., 2007. Bilateral investment treaties, political risk and foreign direct investment. Asia Pacific Journal of Economics & Business 11, 6–24.
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- Kleiner, C., Costamagna, F., 2018. Territoriality in investment arbitration: The case of financial instruments. Journal of International Dispute Settlement 9, 315–338.
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Kliatskova, T., Savatier, L.B., Schmidt, M., 2023. Insolvency regimes and cross-border investment decisions. Journal of International Money and Finance 131, 102795.
- Kriebaum, U., 2015. Arbitrary/Unreasonable or Discriminatory Measures, in: Bungenberg, M., Griebel, J., Hobe, S., Reinisch, A. (Eds.), International Investment Law. Nomos, Baden Baden.
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- La Porta, R., Lopez-de-Silanes, F., Shleifer, A., Vishny, R.W., 1998. Law and finance. Journal of Political Economy 106, 1113–1155.
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La Porta, R., Lopez-de-Silanes, F., Shleifer, A., Vishny, R.W., 2000. Investor protection and corporate governance. Journal of Financial Economics 58, 3–27.
Leuz, C., Lins, K. V, Warnock, F.E., 2009. Do foreigners invest less in poorly governed firms? Review of Financial Studies 22, 3245–3285.
- Marshall, M.G., Elzinga-Marshall, G.C., 2017. Global Report 2017: Conflict, Governance, and State Fragility. Center for Systemic Peace, Vienna, VA USA.
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- Mayer, T., Zignago, S., 2011. Notes on CEPII’s Distances Measures: The GeoDist Database. CEPII Working Paper 25.
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Mélitz, J., Toubal, F., 2014. Native language, spoken languages, translation and trade. Journal of International Economics 93, 351–363.
- Miller, T., Kim, A.B., Roberts, J.M., 2020. Index of Economic Freedom, 2020 Index of Economic Freedom. The Heritage Foundation, Washington, D.C. 29 Mina, W., 2015. Political risk guarantees and capital flows: The role of bilateral investment treaties. Economics: The Open-Access, Open-Assessment E-Journal 9, 1–38.
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Mina, W., 2009. External commitment mechanisms, institutions, and FDI in GCC countries. Journal of International Financial Markets, Institutions and Money 19, 371–386.
Neumayer, E., Spess, L., 2005. Do bilateral investment treaties increase foreign direct investment to developing countries? World Development 33, 1567–1585.
Poshakwale, S.S., Thapa, C., 2011. Investor protection and international equity portfolio investments. Global Finance Journal 22, 116–129.
- Risso, G., 2020. Portfolio investment in ICSID arbitration: Just a matter of consent? Journal of International Arbitration 37, 341–362.
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- Salacuse, J.W., Sullivan, N.P., 2005. Do BITs really work?: An evaluation of bilateral investment treaties and their grand bargain. Harvard International Law Journal 46, 67–130.
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- Silva, J.M.C.S., Tenreyro, S., 2006. The log of gravity. Review of Economics and Statistics 88, 641– 658.
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- State Fragility Index, Center for Systemic Peace, Marshall and ElzingaMarshall (2017). WGI dummy The WGI dummy is based on the six WGI risk components: voice and accountability, political stability and absence of violence, government effectiveness, regulatory quality, rule of law, and control of corruption. The components score from roughly from-2,5 up to + 2.5. Low values indicate high risk. The average of these six components serves as an overall risk indicator (WGI index). The binary WGI dummy indicates highrisk countries where the WGI index scores below the sample median.
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- Tobin, J.L., Rose-Ackerman, S., 2005. Foreign Direct Investment and the Business Environment in Developing Countries: The Impact of Bilateral Investment Treaties. Yale Law & Economics Research Paper.
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Tobin, J.L., Rose-Ackerman, S., 2011. When BITs have some bite: The political-economic environment for bilateral investment treaties. Review of International Organizations 6, 1–32.
- UNCTAD, 1998. Bilateral Investment Treaties in the Mid-1990s. New York.
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- UNCTAD, 1999. National Treatment, UNCTAD Series on Issues in International Investment 30 Agreements. New York, Geneva.
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- UNCTAD, 2000. Transfer of Funds, UNCTAD Series on Issues in International Investment Agreements. New York, Geneva.
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- UNCTAD, 2005. Investor-State Disputes arising from Investment Treaties: A Review, UNCTAD Series on International Investment Policies for Development. New York, Genva.
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- UNCTAD, 2010. Most-Favoured-Nation Treatment, UNCTAD Series on Issues in International Investment Agreements II. New York, Geneva.
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- UNCTAD, 2012a. Fair and Equitabel Treatment, UNCTAD Series on Issues in International Investment Agreements II. New York, Genva.
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- UNCTAD, 2012b. Expropriation, UNCTAD Series on Issues in International Investment Agreements II. New York, Genva.
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- World Governance Indicators, The World Bank, Kaufmann et al. (2010). Table A4: Description of control variables Variable (hypothesized sign) Definition Source Ln distance (-) Natural logarithm of the distance between the capitals of two countries.
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- Yackee, J.W., 2008. Bilateral investment treaties, credible commitment, and the rule of (international) law: Do BITs promote foreign direct investment? Law & Society Review 42, 805–832. 31 Tables and Figures Figure 1: Frequently breached treaty clauses in arbitral proceedings decided in favor of a foreign investor Notes: The Figure displays the most frequently breached treaty clauses in descending order. The database contains 137 arbitral proceedings that have been decided in favor of the foreign investor from 1990-2020 (UNCTAD, 2020). The total number of clauses listed exceeds the number of disputes since an arbitration award may be based on several breached treaty clauses. 0 10 20 30 40 50 60 70 80 90 FET Ind. Expr. Direct Expr. UAD FPS UC ToF NT MFN Other reasons 32 Table 1: Summary Statistics N Mean Median SD Min. Max.
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